HR leaders and staff are the primary users because they handle day-to-day personnel activities and ensure accountability and performance monitoring. However, HR isn't the only department that reaps benefits. Self-service for routine activities empowers managers and staff, which is especially compelling for newer hires. Managers can leverage an HRMS to generate insights on workforce patterns and their impact on the organization.
HRMS Pros
HRMS feature sets vary greatly from one provider to another, and blending multiple systems may hinder overall effectiveness. Therefore, HR, IT, finance, and other stakeholders should evaluate which HRMS features are vital for the business.
Benefits administration: Aids HR professionals in formulating plans, establishing eligibility criteria, and managing premium payment processes to insurance providers. Additionally, self-service open enrollment is provided, and compensation costs are seamlessly integrated with bookkeeping.
Centralized employee records: Establishes a single database to store, update, and maintain all employee records. This leads to more accurate documentation and reduces legal and compliance preparation costs.
Learning management features: These functionalities support employees in acquiring or enhancing skills through course administration, curriculum development, assessments, and certifications. Companies can also utilize it to deliver and monitor mandatory training programs.
Monitoring and analytics: Offers the ability to create management reports for tracking HR data, fulfilling compliance obligations, establishing KPIs to measure HR process effectiveness, and integrating HR metrics with financial presentations for comprehensive company analysis, budgeting, and decision-making. Look for options to produce ad-hoc reports as well.
Wage calculations: Can calculate hourly wages, adjust annual bonuses, manage overtime, sales commissions, shift differentials, and pay raises while deducting regulatory and optional fees, leading to accurate net payments for staff at predetermined intervals.
This functionality may include benefits such as matching retirement fund contributions or mobile phone allowances.
Recruiting talent: Before handing over new hires to a generalist or hiring manager, recruitment teams can create career pages on the corporate website, manage job requisitions and descriptions, oversee open positions across job websites, manage resumes, track candidates through the hiring process, extend job offers, conduct background checks, oversee pre-employment medical checkups, and create job application forms.
HR managers can utilize talent management tools to assess and develop staff through performance reviews, goal tracking, and competency and skills evaluations.
Time and attendance management: Allows for the handling of time-off requests and balances, while also managing staff scheduling and attendance, connecting timesheets with payroll and assignments.
User interface: Given that an HRMS is intended for the entire workforce, a user-friendly interface is crucial. Today’s platforms typically offer employee and manager self-service options, mobile apps, multilingual support, customizable dashboards, workflow automation, role-based access controls, and alerts to keep employees engaged and minimize HR and IT inquiries.
Workforce planning: This functionality enables planning and budgeting for workforce expenses while comparing actual spending in present and future scenarios. It’s also beneficial for identifying skill gaps, crafting strategic plans, and prioritizing hiring initiatives.
Highly specialized HRMS solutions may offer additional features, and not every organization requires an all-encompassing system. If you opt to build an HRMS by sourcing from different vendors, ensure that all solutions have an open structure that facilitates bidirectional data sharing, critical integrations, and file uploads across the platform. Selecting a single HRMS provider alleviates the complexities and costs associated with one-time integrations, which can often be expensive, intricate, and challenging to secure and upgrade.
The Advantages of Using an HRMS
- Enhanced knowledge and understanding:
- Improved employee engagement.
- Fostering a self-service culture and enhanced process efficiency.
- Reduced backend costs.